Reagan v. Hadley

57 Ind. 509
CourtIndiana Supreme Court
DecidedMay 15, 1877
StatusPublished
Cited by14 cases

This text of 57 Ind. 509 (Reagan v. Hadley) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reagan v. Hadley, 57 Ind. 509 (Ind. 1877).

Opinion

Howe, J.

The appellee, as plaintiff, sued the appellants, as defendants, in the court below.

Appellee’s complaint was in three paragraphs, and issues of law and fact were formed on each of these paragraphs ; but, before the final submission of the cause to> the jury, the appellee virtually abandoned the first and third paragraphs of his complaint, and the jury were so instructed by the court below.

In our examination of this cause, therefore, we will consider the second paragraph of appellee’s complaint alone, as if it were in fact, what it is in effect, the only complaint in the action.

In the second paragraph of his complaint, the appellee alleged, in substance, that on the 23d day of May, 1865, he sold to the appellant Sylvester Johnson and one Robert Johnson, who were brothers and partners in business, certain land hereinafter described; that, in part consideration for said land, the said Sylvester and Robert Johnson executed their promissory note of that date for two thousand dollars, a copy of which note was filed with said paragraph as a part thereof, which said note was [511]*511made payable six years and six months after date, with interest thereon from December 25th, 1865, without relief from valuation or appraisement laws; that, to secure the payment of said note, the appellants Sylvester and Mary B. Johnson and said Robert Johnson executed to appellee a mortgage on said real estate, a copy of which mortgage was filed with said paragraph as a part thereof; that afterward said Robert Johnson conveyed his right, title and interest in and to said land to said Sylvester Johnson, who assumed and undertook the payment of said debt; that afterward, on the — day of-, 187—, appellant Sylvester Johnson, intending and contriving to cheat and defraud the appellee, falsely represented to appellee, that he, said Sylvester Johnson, wanted, and was arranging, to negotiate a loan with a certain insurance company, for the purpose of procuring money with which to pay off and discharge appellee’s debt, and that he had so far arranged to negotiate said loan as that all that remained to enable him to consummate said arrangement, and negotiate said loan, was, that the appellee should release said mortgage on said land, so that he might thereby mortgage it for said loan, and that he could only procure said loan by appellee’s releasing his said mortgage, and said Sylvester Johnson thereupon agreed and pledged himself, that, if appellee-would make and execute such a release, he would and could thereby procure said loan, and would, with the money so procured, immediately pay off and discharge appellee’s said debt; that appellee, relying upon said fraudulent representations, and believing that said Sylvester so intended to negotiate said loan, and to pay him his debt, which had then been long due, made.and executed a release of said mortgage, and recited therein that said debt was paid and satisfied, and did so for the purpose aforesaid and none other, and was induced thereto by said representations and none other; that the appellant Sylvester Johnson was not then intending nor attempting to negotiate a loan- with any insurance com-[512]*512party, and had not made any arrangement for such purpose, and was not intending thereby to procure money to pay off appellee’s said debt; but that, having so procured said release to be executed, he, said Sylvester, thereupon, in violation and utter disregard of his promise, 'and in fraud of appellee’s rights, sold the said land to the appellant -Reagan, who agreed to pay him' therefor the sum of-dollars, and executed his promissory notes therefor; that there was still unpaid and owing, upon said notes, by said Reagan, the sum of two thousand five hundred dollars, and that appellee’s said note, except the sum of one thousand dollars paid thereon, was due and unpaid, to appellee’s damage in the sum of two thousand dollars. Wherefore appellee demanded judgment against said Sylvester for two thousand dollars, that said mortgage be foreclosed to the extent of the amount of money yet due from said Reagan upon said land, or to the extent of appellee’s claim, and for all other proper relief.

. The copies of the note and mortgage, which were made parts of said paragraph of complaint, were filed therewith and are set out in the record.

The appellants Johnson and wife, and the appellants, the Reagans, severing in their' defence, demurred to the second paragraph of appellee’s complaint, for the alleged insufficiency of the facts therein to constitute a cause of action, which demurrers were severally' overruled' by the court below, and to these decisions the appellants severally excepted.

And the appellants Jesse and John W. Reagan, severing in their defence, for answer to the second paragraph of appellee’s‘complaint, said, in substance, admitting the execution of the note and mortgage as therein averred, that it was true, as therein set forth, that appellee, on the 8th day of April, 1872, and again on the 11th day of April, 1873, executed and delivered to said Sylvester Johnson acknowledgments of satisfaction, and releases, of said mortgage, duly acknowledged, and the samé were [513]*513duly entered of record with and upon said mortgage, copies of which releases were filed with said answer; and said appellants, the Reagans, further averred, that said Sylvester Johnson, immediately after the execution and record of said releases, procured a loan of two thousand five hundred dollars of The North-Western Mutual Insurance Company, and executed a mortgage therefor to said company upon the lands set out in said mortgage to the appellee, and before the execution of said release had negotiated said loan of said company; that on the 12th day of April, 1873, said Sylvester Johnson, by a warranty deed, conveyed said lands to the said Reagans, subject to said mortgage to said company, for six thousand dollars, which sum said Reagans paid to said Sylvester, except the sum of two thousand dollai’s, for which they executed notes to said Sylvester in instalments of five hundred dollars, which notes said Sylvester immediately assigned and transferred for value, as follows: one note to Charles W. Ballard and William A. Poe, who transferred the same for value to Samuel M. Mitchell, who then owned and held the same; and the other three of said notes said Sylvester transferred and endorsed, for value, to Leander Johnson, who, for value, immediately transferred the same to John C. Burton & Co., who then owned and held the same, which transfers and assignments of said notes were made, and said notes delivered, to the then holders thereof, before the said Reagans had any notice that appellee had or held any claim on said land, or that his said mortgage had not been fully paid and satisfied; and that the said Reagans had been notified of the said assignments of their said notes to the said holders thereof, long before the said Reagans had any notice that the appellee’s mortgage was not paid; that before said note was transferred to said Ballard and Poe by said Sylvester Johnson, the said Reagans, without any knowledge or notice of any of the fraud or matters set up in appellee’s complaint, [514]*514undertook and promised said Ballard and Poe, that said • Reagans had no defence to said note, and would pay the same to said Ballard and Poe, according to its tenor and effect, nor had said Ballard and Poe, or Mitchell, any notice of any of the fraud or matters set up by appellee in his complaint, when said note was so assigned.

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Bluebook (online)
57 Ind. 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reagan-v-hadley-ind-1877.